Ailing Indian tea industry

Why in news?

Sri Lanka is commemorating the 150th anniversary of its tea industry.

What is its condition?

• Sri Lankan tea industry accounts for 5% of world output.
• It is among the world’s top five exporters of the agro-commodity.
• It supports 20% of the country’s population through direct and indirect employment.
• The celebration in Sri Lanka draws attention to the present state of affairs in the Indian tea industry.

What are the problems in Indian tea industry?

• Tea exports from India dropped for the second consecutive year.
• Tea quality has become an issue and this is reflected in depressed prices.
• Big companies are exiting the industry.
• Increased pressure in the wake of increased costs amid decreased earnings worries the remaining few companies.
• The issues of absenteeism as well as worker migration affect the growth of the industry.
• Political shutdown in Darjeeling (amidst demand for separate land), one of the major players in the Indian Tea industry,  adds to the  worsening effect.
• This could result in foreign exchange losses to the country
• It could also affect the global brand equity of Darjeeling tea in the global market.

What should be done?

• Efforts to promote tea industry as an export-oriented industry.
• Making presence in export markets in strife-torn countries like Syria where India is absent.
• Materialising every opportunity to expose the tea industry to a world.

Source: The Hindu